PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.  6a 
ACTION ITEM 
Date of Meeting  May 12, 2015
DATE:    May 11, 2015 
TO:      Port of Seattle Commission 
Ted Fick, Chief Executive Officer
FROM:   Mike Merritt, Interim Chief of Staff 
SUBJECT: Notifying Foss Maritimeof City of Seattle Interpretationfor Interim Use of
Terminal 5 

ACTION REQUESTED 
Request the CEO to advise Foss MaritimeCompany that the City of Seattle has determined the
proposed moorage of the Royal Dutch Shell exploratory drilling rig and two accompanying
tugboats are not a permitted use at Port cargo terminals. 
BACKGROUND 
"Big Ship Ready"
Terminal 5 had been vacant since July 2014 with the termination of the lease agreement between
the Port and Eagle Marine Services, Ltd, as the Port pursues the modernization and upgrade of
the terminal. Including Terminal 5, efforts to make Port facilities "Big Ship Ready''include
new larger cranes, strengthening of the pier, berth dredging and other improvements.
Interim Usage 
The Port of Seattle has entered into a lease with Foss Maritime for the use of approximately 50
acres at Terminal 5. Foss MaritimeCompany, with Royal Dutch Shell as its customer,secured
the property as a short-term berth for vessels used in oil and gas exploration in Alaska.
Foss Maritime's intended use of theleased area atT-5 is to receive, inventory, and stage
equipment and supplies that would be loaded to a fleet of vessels, including exploration drill rigs,
ice-breakers, provisioning vessels, environmental response vessels, tugs and barges for seasonal
operations in Alaska. The fleet of vessels would depart forAlaska in June and would likely 
return to Seattle around October, staying through May. The project began March of 2015 with a
two year lease agreement, signed on February 9, 2015.
On March 2, 2015, a coalition of conservation organizations filed a lawsuit against the Port of
Seattle and the Port Commissioners, challenging the Port's entry into the lease with Foss
Maritime.  That lawsuit is expected to come to trial in 2016 and scheduled for a dispositive
motion on July 31, 2015.

Template revised May 30, 2013.

COMMISSION AGENDA 
May 11, 2015
Page 2 of 3
On March 24, the Commission unanimously adopted a motion to require explicit Commission
approval for any extension of time for the Foss Maritime Lease, changes in the lease area, or
other modifications of the lease. 
City of Seattle Land Use Interpretation 
On March 9, 2015, the City of Seattle announced that the Department of Planning and
Development would review, investigate and determine whether the Terminal 5 interim use would
be allowed under the terminal's Shoreline Substantial Development Permit. Upon the early
March announcement of additional review by the city, the Port promptly responded to city
requests for information about the T-5 project only days later, on March 13.
Following a subsequentexchange of information, on May 7, 2015, DPD formally issued an
interpretation that concluded the proposed moorage of oil-exploration vessels and related activity
is not consistent with the city's cargo-use definition and that an additional permit is necessary. 
Subsequently, DPD clarified that  under SMC 23.88.020  land use code interpretations are site
specific. Thus, DPD Interpretation#15-001 cannot be directly applied to activities occurring at
other Port facilities.  Seattle Mayor Ed Murray, in a letter to the Port Commission on May 8,
2015, reiterated that the DPD Interpretationapplied to the specific Terminal 5 use for oilexploration
activities alone. The Mayor offered to consider revisions in city regulations if they
do not reflect historic, current or future uses at cargo terminals. Such changes in city regulations,
however, could not be accomplished within the current schedule for the arrival of the Shell oilexploration
vessels.
Analysis by Port staff concludes unless a vessel meets with the City's interpretation of a "cargo
vessel," it could not lay berth at Port cargo terminals. Since the Interpretation does not construe
the Shell drilling rigs or support tugs to be "cargo vessels," these particular Shell vessels would
not satisfy City code requirements for mooring at Terminal 5.
Regardless of the city's follow-up communication, unless the interpretation is further clarified,
the Interpretation could be used in the future, by either the City or by business competitors of the
Port's tenants and licensees, to challenge future moorage by these types of vessels.The
conclusion to theInterpretation states that an "additional use permit" is required, but the
Interpretation does not identify what that permit might be.
If the conclusion instead means that the Port must obtain shoreline conditional use permits before
the  Port  can  allow  moorage  of canon-rgo  vessels  (as  defined  in  theInterpretation),  this
permitting process also would likely take at least a year or more.It is also possible that the
permit conditions required for a shoreline conditional use permit or a special use permit might be
too onerous, or expensive to satisfy.
On May 8, 2015, Foss Maritime announced the company's intention to appeal the DPD
Interpretation, citing impacts on Foss Maritime activities as well as potential conflicts with
common maritime operational practices throughout the city.

COMMISSION AGENDA 
May 11, 2015
Page 3 of 3
Summary of Proposed Motion for Commission Consideration
The Port Commission directs the Port of Seattle Chief Executive Officer to notify Foss Maritime
Company that, according to a zoning code interpretation issued by the Director of the
Department of Planning and Development of the City of Seattle, the proposed moorage of the
Royal Dutch Shell exploratory drilling rig and two accompanying tugboats at Terminal 5 is not
consistent with the legally established use of Terminal 5 as a cargo terminal under applicable
zoning laws, and that, if and when this code interpretation is deemed a final decision by the City
of Seattle, should such moorage occur,the Port of Seattle wouldconsider its options under the
lease including the right to declare a default by Foss Maritime Company under Term Lease
Agreement No. 002652

ATTACHMENTS TO THIS REQUEST 
City of Seattle DPD Land Use Interpretation issued May 2, 2015
March 24, 2015 Port of Seattle Commission motion regarding Seaport Accountability
May 8, 2015 letter from Diane Sugimura, DPD Director regarding T-5 interpretation 
May 8, 2015, letter from Mayor Ed Murray to the Port Commission
May 8, 2015, statement from Foss Maritime concerning appeal of DPD interpretation
Proposed motion of the Port of Seattle Commission regarding Foss MaritimeInterim
Lease at Terminal 5 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 22, 2014, Lease termination agreement authorization for Terminal 5 
May 13, 2014, Terminal 5 Facility Modernization Briefing
January 13, 2015, Interim uses of Terminal 5 Briefing
March 24, 2015, Adoption of Port of Seattle Commission motion regarding Seaport
Accountability